Steps to Avoid Disability Insurance Fraud

Disability insurance fraud is when an insurance provider tries to avoid paying the consumer for services that were promised under the contract. Insurance companies are going to make their policy sound good when trying to get people to sign up, but the best test of how good the company is comes when the consumer is injured and needs to cash in on the policy. Examples of disability insurance fraud are when companies deny benefit payments for invalid reasons or give less money than promised.

Victims of disability insurance fraud may end up with costly legal fees trying to get the disability payments they need. Delays in payments can also strain personal finances. 

The best way to avoid disability insurance fraud is to be informed about the company and what they are promising to provide.

  • Study the terms. Things to look for include how disability is defined, how soon benefits kick in after an injury or illness, how long benefits will last and what percentage of total salary will be paid.
  • Understand the policy. If possible, it is best to have a lawyer or professional look over the policy.
  • Know the company. Make sure the company is reputable through rating companies.
  • Get it in writing. Everything discussed with the agent should make it into the policy.

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